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Homogenization is for Milk (If You Drink That Sort of Thing), Not Dealers

“If digital were that easy, everyone would be doing it” said no automotive OEM executive, ever. But somehow, over the past few years, it seems as though they did. Meaning, for the most part, they don’t do anything digitally and yet…they expect their franchises to through some very forceful measures.

The dealers don’t win. The consumers don’t win. The car companies win. Concessions. That’s all. And not the kind that sell more cars. No, car sales are not up due to websites, erosion of gross or 84 month leases. Car sales are up because of demand, available loans and because, yes, the cars (all of them) are being made better today than ever. Oh, and of course, because your website company says their marketing rocks and they deliver the most low-funnel consumers to your doorstep (yeah, those reports make us puke, too).

Homogenization has never been greater at a time when nearly every smart person in marketing (automotive and non) says to create differentiation in every aspect of your business. Yet your OEM digital representative, who was in sales operations three years ago and brand communications a year ago, comes in and says that you have to/should use website provider A or B (that doesn’t have a fully responsive mobile platform, let alone one site), CRM vendor C2, search marketing partner D5B and consulting company WTF (who’s consultant was born the same year your rep graduated Northwood and worked at a Verizon store last).

If you’re smart and digitally savvy, you’ll run as fast as you can the other way. Why? Because selfishly, every digital know-it-all can do a better job? No. Because, unless you have a well under-performing store that you can plug any brainless automotive digital veteran into, buy more leads and sell more cars, they’re after your data, customers, results and ideas through managed programs. Yes it’s absolutely essential to have every retailer represented well digitally, however if a dealer wants to think that digital is a fad and not put resources into the top consideration generator, let them do so. It’s natural selection in business folks, let ’em sink.

Being made to look like every dealership with the same banners, offers, landing pages, newsletters, paid marketing and social media is a slow, miserable existence. An import dealer shared today that during his recent brand marketing meeting, an OEM digital overlord told him that he should have the ability to turn off all of the factory marketing if he had his own. Unfortunately, his website company (OEM-endorsed) didn’t allow him to and the third-party, in-the-way-of-your-results consulting firm didn’t have an answer on if he could or not. (the OEM guy did take notes and will report back!)

Another dealer chatted with us about not having proper used car data on their OEM-endorsed websites for their group. You think that the car company loses any sleep over used car anything, let alone mis-equipped listings potentially losing thousands of dollars?

It’s time to take your marketing over if you want to. Yes, it’ll take time, money, measurement (you don’t understand now), resources, patience and a die-hard willingness to learn, changing your dealership culture. And it has to start with the dealer and general management. Not for a dashboard or an award, not for a magazine cover shot or being called up at a conference. And quit talking about visits or sessions, that’s so 2008. Nothing cooler than telling your dealer “we had 1,000 people on the lot and in showroom, sat down with 28 and sold 4!”. By the way that’s what your website says.

All of this is because if something doesn’t sell or service a car, or get someone back to your dealership, it’s not worth buying or using. And nobody, not one person, after working with hundreds of dealers, on OEM programs, at 20 Groups, conferences and webinars, producing second-to-none content, social and SEO, can convince us that standardizing marketing and solutions across thousands of retail points across North America can do anything other than paint the industry with a bland brush.

You don’t deserve that and your customers don’t deserve that. Will Rogers once said “If you find yourself in a hole, stop digging”. Unfortunately these OEM digital programs have created a Crab Mentality by literally not letting those that choose to get ahead. Good intentions, poor execution.

You can do much better. We hope. (310) 377-6481 or info at imacsweb.com

 

Best Practices: Professional Insight, Powerful Results

September 16, 2015 by Gary May 2
Misunderstanding the Misunderstood (A Post-NADA Perspective)

Too often, we mix messages. We misconstrue. We miscount. And most often, decisions based off those actions lead to more of the same. There is a lot of “data” out there: actionable, validated, accurate data, and damaging, paralyzing, inaccurate “data”.

 

Last year IM@CS was fortunate to be involved with a Mercedes-Benz project around lead management and one of the talking points (not from us or our partners) showed the average customer in 2013 submitted a lead to 1.3 dealers. Not only has this been invalidated by at least a half-dozen companies, in speaking with the dealers themselves, the empirical data disputed that. The data. “Data” brought in by (maybe) well-intentioned parties however far from accurate, very far for allowing a proper action plan and light years from having the dealers make sense of it.

 

Too often, the OEMs, and admittedly dealers, are lit up by flashy bids, mesmerizing proposals and the all-too-famous “we also have contracts with Competitor A and Competitor B” line or the notorious “we built the space/were first to launch this” verbal flatulence.

 

Another case in point: Last year General Motors rolled out an initiative for BDC build-out for it’s nearly 4,000 franchises. Good intentions, a little late on the “action bandwagon” (we spoke with GM about his in 2008 and 2009) aimed at mitigating the massive amount of lost sales due to lackluster lead response and follow up (read: all OEMs fall in to this bracket and have subsequently gone at solutions the wrong way). Enter two vendors for those dealers. Yes, two. Two vendors for build out and support of thousands of dealers’ BDCs. Then, the co-op curse, leading most dealers, due to “cost”, to not hire companies that can scale better, are more experienced (in real life, not on paper).

 

It’s time to stop misunderstanding the misunderstood! Who are the misunderstood? The agile, more up-to-date, active, often smaller guys and gals who prove themselves daily, weekly and monthly.  The misunderstood are the companies with great services, not great advertising and magazine cover shots. The misunderstood are the ones who deliver faithfully without contracts or gouging (why would a dealer ever sign a contract for services that must be measured?).

 

There is a prominent Internet/Marketing Director from the Midwest who, a couple months ago, posted on their Facebook page that their group was firing their existing trainer, and looking for a more progressive company that didn’t have an OEM contract. Why? Why? Why? Simply put, the services provided, as do most of the OEMs and the companies they endorse, couldn’t deliver for today’s market regardless of that company’s data!

 

The misunderstood are so titled due to the lack of willingness of dealers to get way from comfortable and, simply put, sell and service more cars. Its not your word tracks, it’s not your phone call scoring. It’s not your trainer that has to repeat him/herself each and every month and bring in nearly-duplicate reports. IF you don’t understand how something works, stops paying for someone to do it. Understand it.. Even if you find a partner to leverage, you’d better understand it.

 

The industry, by and large, still can’t respond to a lead effectively, completely and with a reason to buy in under a day.  We’re starting the 21st year of the Automotive Internet. You don’t need to know ode, you absolutely must understand why having a responsive website is a must. You don’t need to know how Facebook changes their algorithms, you absolutely must understand targeting das and dark posts. You don’t need to how Google leverages directories and local citations to leverage local search, you absolutely must understand how and where to update your information, links and phone numbers.

 

Best Practices: Professional Insight, Powerful Results

 

February 1, 2015 by Gary May 0
Natural Unselection (It Takes Time…)

Yes, it is getting more and more difficult for business owners to make decisions today that will positively impact their business, especially in the arena of digital marketing. You might say “bull hooey” and protest that it has become easier. And you’d be half fright…

Nothing is more frustrating to a business owner that not understanding something that should otherwise be “easy” to do so. That’s where misguided trust and blind recommendations become so darn appealing. Attend a 20 Group and you just might be amazed as to how eloquent an otherwise inept presenter can be.

We live in a world of regurgitated content, many times so prolific that anyone can claim it to be theirs. Car dealers and executive management, typically, know what has been and possibly what is happening now.  They’re still overwhelmingly blind to what is going to happen, even though it’s in front of their eyes. And smartphones.

However, the chasm that exists does so simply because the dots aren’t connecting. In other words, they “get” that they need to market in a new channel, or completely store prospective and customer data in CRM, or spend time understanding new reports. While there is no excuse, none whatsoever including “time”, to not do any or all of that, there is at least bandwidth to consider.

As much as it easy to blame the OEM for (many) programs of epically disastrous proportion, it is up to the dealer to make sure their house is in order.

The struggle that has presented itself over the past 3-4 years, and it’s gaining momentum by the way, isn’t whether to do more, invest more, hire more or attend more, it is truly around letting go of operations to those that they have in power and get immersed the way they did when they started selling, or working in the service drive, or washing cars for their owner-parent while memorizing the specifications to 95% of the cars each year. More than ever you must have a desire to consume, learn, test and challenge yourself. And, ahem, everyone around you.

Recently, especially if you get caught up in rumor, there has been more and more reports of OEM digital, education and training programs being under scrutiny. Enter in shock and awe. Well, at least for everyone but those unfortunate few of us who called into question the very under-budgeted, under-staffed, under-educated, under-facilitated, under-read, under-thought-through contracts. While the programs disserve the OEMs, dealers (at least progressive and knowledgeable ones) are pretty much disgusted. And no, the programs are not responsible for selling more than a negligible increase in amount of cars. Period.

Now here’s the conundrum….we can’t throw another conference at them. We can’t throw another “digital marketing”, or “social media”, or  “digital consulting”, or “new age training“ company at them either (you can here the shotguns loading now). And you’ll not be able to convince them that the person visiting them with zero hands-on experience in anything he/she is talking about will make a difference. Unfortunately they might have to let that person visit to make the factory happy. Ugh.

Dealers and OEMs should be able to (stop everything they’re doing and) reevaluate the broken CSI, allocation and reward programs that current exist. Then, as one example, build new models that actually reward dealers who perform exceptionally for their sales and service customers, not exclusive to volume, according to only those customers (versus third party companies), transparent, benchmarked scoring (imaging that!) and overall investment (including but not limited to the facility).

Yes, customers expect more. And that’s not going to stop, ever. And yes, more cars are selling; same with large new-technology televisions, tablets and dinner reservations. When the “easy” sales stop again, fewer dealers will be ready for reality. At least the reality they’re living on and sold by people who shouldn’t be selling them…

Best Practices: Professional Insight, Powerful Results

August 8, 2014 by Gary May 0
The More Things Stay The Same, The More They Stay The Same

We're considering making a big alarm clock. No, a BIG %^&*#$@ alarm clock. That way instead of waking up 10-100 dealers at a time, we can wake up 10,000. And folks, we all should know how big that clock has to be. 14 years of the automotive Internet, over 6 years for most OEM website programs and CRMs, over 3 years of SEO chatter, social media, landing pages, microsites, email marketing and nearly 2 years of mobile, geo-location, widgets and integration. What do we have to show for it? The alarm clock is not big enough.

Two percent leadership and a bunch of blank stares. The season of automotive industry digital marketing events is upon us. It's time to move the needle. Even before massive fees, niclkle-and-diming- new widget this and new fandagled that. And it's not "back to basics" or "blocking and tackling". If you want to stick to blocking, the customers are going to be walking. The alarm clock is not big enough.

Many folks talk about how the people that have been moving the industry's training and messaging programs are right there in the comfort zone, what they like, the heart of the 20 Group, the flame to the cigar so-to-speak. Many dealers around the country are still FourSquaring and we're not talking about the social media game. Many dealers don't have photos up on inventory for a week or two (or longer) after receiving the units. Many dealers don't know the first thing about where, what, how and why there are reviews on the web (or, in some cases, all over it) about the poor experiences at their dealership. The alarm clock is not big enough.

We're talking about dealers having to buy leads since their own inventory doesn't display correctly, generating their own leads. We're talking about the leads that are received not being handled right nearly 70% of the time. We're talking about dealers struggling with finding the right people to handle the leads right, yet hiring the wrong people in the first place. The alarm clock is not big enough.

Consider the volume of content that is available to every dealership with an Internet connection*. Consider the wealth of knowledge that exists at the other end of the phone at nearly any time. Consider the amount of information available in one day with the right person. Consider how much consumers, us, are changing the rules. The alarm clock is not big enough.

*Blocking computers from accessing most of the web? Does the industry emply adults? The alarm clock is not anywhere close to big enough for people with that much control. My fricking gosh, lighten up.

Think about how much less the franchise matters today and how much more the dealer brand matters. Think about how your HTML website* won't load on a cell phone nicely but your United, Delta and American boarding passes do. Think about how much more you want your customers to spend at your store but they don't even open your emails (because hopefully you're actually looking at that). The alarm clock is not big enough.

*And the fact that your website company is using Flash-laden pages, can't deploy a PHP-coded application and won't be able to resize and deploy a widget or give real analytics? No alarm clock can wake that up.

Really, the more things stay the same, the more they stay the same. It's not that we believe there are people intentionally not doing what they should to move the industry forward or that they can't do it. No. It's that whatever has been done has honestly moved the ball forward about a yard but it's 4th down and 28 yards to go. This round of events in Las Vegas needs to get as much fire about them as profits because of them.

Not the same data. Not the same repackaged presentation. Not even the same presenter. Not the same expectation. Not the same end game. Not the same focus. Not the same anything. We all know dealers that are afraid today. Isn't fear supposed to promote change?

Here's a challenge: Every speaker. Every presenter. Every vendor. Follow up your sessions with a call or onlne meeting within two weeks of the event for everyone that wants it. And promote it. For Free. Answer every question. Refer other companies if you don't offer something that's being asked for. Give something away at your session. Really give it away. No strings attached.

Maybe it's a start. Maybe it's about time. Maybe it's about the dealer. Maybe it's about selling and servicing cars. What do you think?

Best Practices: Professional Insight, Powerful Results

October 6, 2010 by Gary May 0
Vendoritis Or Dealeritis: Part Deux

After the recent seminars and events in the Los Angeles area it seems more clear than ever: dealers want to do more, are mostly eager to address new opportunities (or old ones sold as new), are baffled by new technology including social media, are looking at the factories for direction and don't seem to have the right questions to ask the not-so-prepared, over-eager vendors.

In a number of panels that spanned these events, the tough questions either weren't asked or answered. This is not a knock on either the speakers or the crowds, most very qualified to talk about new media and marketing. It's just a fact. One panel on social media had some great experts. On data. Not one person doing it for an OEM or a dealer (or, judged from afar, likely even doing it themselves daily). Another panel had some great participants from very disparate areas of automotive talking about some specific activities they're doing. Truly great examples, results and actions were shared. The missing component was how the average dealer, yes including those in attendance, can implement a plan.

What is happening, as our world moves forward at a speed more reminiscent of the amazing La Mans cars running around Circuit De La Sarthe as this is being written, might be another dose of "ignorance is bliss". And that doesn't help anyone. Dealers asking their factories and reps for help (as was overheard quite frequently lately) are getting shrugged shoulders, "we're working on that right now" or "hire the right company or employee to handle that" responses. In other words, dealers are on their own.

So the dealers' sources for information are limited to their 20 group, industry events and magazines, word of mouth and the old fashion pitch by the vendor. Most dealership decision makers aren't reading the blogs and forums because if they were, they'd be asking questions and participating (yes, we regularly scan for them). So, as with the first "Vendoritis Or Dealeritis" post a while back, the question needs to asked again: how do dealers move forward?

Our industry is always in flux. Lately there has been a more interesting bend, however. Dealers and vendors, for example, fixated solely on SEO for the past year plus are now looking at poor conversion stats to fix.There will be the same issues with social media in a year: those that chose to hire crap automation and get to 5,000 Facebook fans and 10,000 Twitter followers will discover that it's not done anything for brand or business building since over 1/2 of their social media throng is over 500 miles away if not in another country.

When you take your eyes off the ball, you can't catch it. You likely won't even see it. Many today say "bullshit, I can do it all". Well, good luck to you. The best of the Fortune 100 acknowledge that they can't. Maybe automotive retailers can do it all: sell the cars they need to monthly and still talk up a great story online. Just like the vendors that do a mediocre job for you somewhere else in your store and tell you that they can add something to their plate. Yeah, and there's a bridge in the desert that I need to show you…

Best Practices: Professional Insight, Powerful Results

June 12, 2010 by Gary May 1